How To Cancel A Photocopier Lease (And Avoid Huge Exit Fees)

Plenty of people only read their copier lease properly on the day they want out of it. That's understandable. The paperwork was signed years ago, probably by someone who's since left, and the machine has been quietly churning out invoices ever since. Then a better quote arrives, or the business moves, or the copier simply stops being worth what it costs, and suddenly the small print matters a great deal.

This guide walks through how copier leases end, why exit fees can be so large, and what you can realistically do. It's general information, not legal advice. If a lot of money is at stake, talk to a solicitor.

Step 1: Read your agreement

Most copier deals are actually two contracts, and it's worth working out which ones you have:

1. The lease or rental agreement. This is the finance part, covering the machine itself. It's often with a finance company rather than the dealer who sold you the copier.
2. The service agreement. This covers toner, parts, engineer visits and your click charges. It's normally with the dealer.

They can end at different times and on different terms. Cancelling one doesn't automatically cancel the other.

For each agreement, find:

• the start date and the minimum term, usually in months (60 is common)
• the notice period, and how notice must be given (in writing, by recorded post, to a specific address)
• what happens at the end of the term: does it end, or roll on?
• the early termination clause, which explains how a settlement is calculated
• who the finance company is, if different from the dealer

If you can't find your copy, ask the finance company and the dealer for a full copy of both agreements, including the terms and conditions. You're entitled to know what you signed.

Step 2: Watch for automatic renewal

This is the single biggest trap in copier leasing. Many agreements say that unless you give notice within a specific window before the end of the term, the lease continues automatically, sometimes for a further year, sometimes quarter by quarter.

The notice window can be surprisingly long. The government's guidance for schools buying copiers warns that "you may need to give more than 30 days' notice in order to cancel" (GOV.UK, checked October 2026). Some business agreements ask for three months or more, and some only accept notice inside a narrow window, such as between six and three months before the end.

What to do:

1. Find the exact end date of your minimum term.
2. Work out the notice window from the agreement.
3. Put a reminder in your calendar well before the window opens.
4. Send notice in writing, by a tracked method, to the address the agreement specifies.
5. Ask for written confirmation that the notice has been received and accepted.

If you've already missed the window, don't assume all is lost. Ask the finance company exactly how long the renewal runs and when the next exit point is. Sometimes it's only a quarter.

Step 3: Understand settlement figures

If you want to leave before the minimum term ends, you'll normally need a settlement figure. This is what the finance company will accept to end the agreement early.

Settlement figures are often large because a lease is a finance agreement. The finance company paid for the machine upfront and expects to recover that, plus its return, over the full term. Leaving early usually means paying most or all of the remaining payments, sometimes with a small discount for early payment.

Here's a simple illustration. Suppose you pay £300 a quarter on a 20 quarter (five year) lease and want out after 12 quarters. There are 8 payments left, which is £2,400. Depending on the terms, the settlement might be close to that figure, less some discount, plus any fees. Read your early termination clause to see how it's calculated.

How to get one:

• Ask the finance company in writing for a settlement figure, valid to a specific date.
• Ask for a breakdown showing remaining payments, any discount and any fees.
• Ask whether the figure includes the service agreement or only the lease.

Step 4: Switching supplier

This is how most people actually get out of a lease. A new supplier offers to "settle" your existing agreement as part of a new deal.

It's normal and can be a good outcome, but understand what's happening. The new supplier is usually adding your settlement figure to the cost of the new lease. You aren't escaping the old payments; you're refinancing them.

Before you accept:

• Get the settlement figure yourself from your existing finance company, so you know what's being paid off.
• Ask the new supplier to show the settlement as a separate line on the new agreement. A published Ricoh public sector agreement on Contracts Finder, for example, includes a section titled "Settlement of Existing Agreements" listing the agreement numbers and amounts to be settled.
• Compare the new quarterly payment with and without the settlement to see what you're really paying.
• Check the new term. A new five year lease can hide an expensive settlement by stretching it out.
• Get written confirmation from the new supplier that it will pay the old agreement in full, and from the old finance company when it has been paid.

Also remember the service agreement. If it ends separately, you'll need to give notice on it too.

Our contracts and lease guide explains how these agreements are put together, and our suppliers page lists companies who can quote for a replacement.

Step 5: Returning the machine

When a lease ends, the machine usually goes back to the finance company or dealer. Before it leaves:

• Get the data wiped. Copiers store scanned and printed documents on internal drives. Ask for written confirmation of how the drive will be wiped or destroyed. Our photocopier security guide explains why.
• Take a final meter reading and photo, so there's no argument over the last click bill.
• Get a collection receipt with the date and serial number.

Some agreements also charge a collection fee, so check that too.

Complaints

If you think you were mis-sold the lease, or the terms weren't explained, complain first in writing to the dealer and the finance company. Be specific: what was promised, what you were given, and what you want to happen.

If that doesn't work, you may have further options:

• Financial Ombudsman Service. Some small businesses can take complaints about financial firms to the ombudsman. According to the FCA and the ombudsman (checked October 2026), eligible businesses include micro-enterprises, which have fewer than 10 employees and turnover or a balance sheet of no more than €2 million, and small businesses with turnover under £6.5 million and either fewer than 50 employees or a balance sheet under £5 million. Whether your particular complaint is covered depends on the firm and the activity, so check with the ombudsman.
• Legal advice. For larger sums or complex contracts, a solicitor can review whether the terms are enforceable.

You can also use our cancel request page to tell us about your situation.

FAQs

Can I cancel a photocopier lease early?

Usually only by paying a settlement figure, which can be close to the remaining payments. Read your early termination clause.

How much notice do I need to give?

It depends on your agreement. Some ask for more than 30 days, and many ask for three months or more, sometimes inside a specific window.

What happens if I miss the notice window?

Many agreements renew automatically. Ask the finance company how long the renewal lasts and when you can next exit.

Can a new supplier pay off my old lease?

Yes, it's common. The settlement is usually added to your new lease, so make sure it's shown clearly and you know the figure.

Do I have to return the copier?

Normally yes, at the end of a lease. Make sure the hard drive is wiped first and get a collection receipt.

Compare replacement quotes

If you're planning to switch, start comparing early, ideally before your notice window opens. Use the form on this page to get quotes from suppliers, and ask each one how they would handle your existing agreement.